SEC Warns Against Unregistered Entities Using Misleading Information

The Securities and Exchange Commission (SEC) has updated its Public Alert: Unregistered Soliciting Entities (PAUSE) list, adding 14 soliciting entities, two firms impersonating legitimate companies, and four fake regulatory agencies. The updated list aims to protect investors, particularly those outside the U.S., from being deceived by entities providing false or misleading information.

New Additions to the PAUSE List

Soliciting Entities:

The following entities have been flagged for providing inaccurate information to solicit investors:

• AbitoTrade Ltd

• Binary Trade Elite

• Capital Gold Asset

• Forex5

• GemFxPro Ltd.

• Global BloomFx

• GOSB Global Company

• IA-Digital Markets

• Medieval Credit Bank

• Remy & Associates LLP

• Strenfield Capital

• Trade Xtix Coins

• TradeHedgely

• Yearn Stocker

Impersonators of Genuine Firms (Spoofers):

These entities falsely claimed affiliation with legitimate companies:

• BFS Investments

• Google Trade

Fake Regulators:

The following entities falsely presented themselves as regulatory bodies:

• Department of Financial Transactions

• Department of International Equities

• Fraud Investigation and Repatriation Authority

• United States Corporate Records Department

Purpose of the PAUSE List

The SEC’s PAUSE list helps investors identify and avoid fraudulent schemes by flagging unregistered entities. Many listed firms have been reported for making false claims about their registration, location, or affiliations to lure unsuspecting investors. According to U.S. securities laws, any firm soliciting investors must register with the SEC and comply with regulations such as disclosure, reporting, and recordkeeping requirements.

Common Misleading Practices

1. False Registration Claims: Many entities claim to be registered with the SEC or affiliated with genuine firms to gain credibility.

2. Impersonation of Genuine Firms: Some entities spoof registered firms to deceive investors, mimicking their names, branding, or addresses.

3. Fake Regulatory Agencies: Bogus organizations posing as regulators often back fraudulent firms, creating a false sense of legitimacy.

   
   

What Does Inclusion on the PAUSE List Mean?

While inclusion on the PAUSE list does not imply a violation of U.S. federal securities laws, it highlights firms reported for potentially deceptive practices. The SEC urges investors to conduct thorough research before engaging with any entity on this list.

How the SEC Updates the PAUSE List

The SEC’s Office of Market Intelligence, in collaboration with the Office of Investor Education and Advocacy and the Office of International Affairs, periodically reviews and updates the PAUSE list. This ensures it reflects the latest complaints and investigations involving unregistered entities.

Key Takeaways for Investors

1. Verify Registration: Before investing, confirm that the firm is registered with the SEC.

2. Be Skeptical of Guarantees: High returns with low risk are often red flags for scams.

3. Use Trusted Sources: Rely on official SEC resources, such as the PAUSE list, to identify potentially fraudulent entities.

4. Report Suspicious Activity: If you encounter an entity making false claims, report it to the SEC immediately.

   
   

Protecting Yourself Against Fraud

The PAUSE list is a vital resource for avoiding scams in the securities market. By staying informed and vigilant, investors can make smarter decisions and safeguard their assets. Visit the SEC’s website for the complete and regularly updated PAUSE list.